succeeding partner to buy out the other’s interest in the company. These plans often aren’t updated. If the value of the company rises greatly and one partner dies, the insurance may not be sufficient to fund the sale of the company to the surviving partner – often resulting in part or all of the company being sold. Business owners also should plan for the unexpected. For
example, the owner is the most important asset of many small companies, so it is important for the owner to be prepared by including disability planning and insurance in his/her wealth management strategy. Planning also can ease transition and business
succession - especially important for business owners since, quite often, the company is the largest single component of the owner’s family wealth. Some business succession plans, for example, involve establishing and transferring ownership of a company to a trust. This can help with an orderly and cost-effective transition.
Taxes, Taxes, Taxes Tax laws have changed dramatically in the last five to
10 years, so it’s vital to work with the appropriate tax professional to keep current on new laws and options. New laws may provide some business owners an exclusion from taxation for personal retirement investments that might previously have been taxed - particularly if the owner is considerably older than the average rank and file employees. Further, there may be other types of plans that provide
owners better benefits than a 401(k). Tax professionals may also help you develop strategies to lower your liability - e.g. by shifting tax burdens to family members in lower brackets. This is especially important when it’s time to move on. Most business owners at some point may expect to
sell their companies or transfer ownership to their family. Yet they may tend to focus on growing the business without paying attention to how they’ll get out of it one day, only to then wake up 10 or 20 years later and say, “I’m tired of this – I want to do something else,” or “I want to retire.” That’s when the reality of high taxes may hit in full force.
Integrated planning could have potentially helped reduce their tax burden. A wealth management professional can help you identify
the financial planning issues that are most important to business owners and their families. Bring together a team of investment and business succession planning specialists who can help clarify your total financial picture and leverage your assets more efficiently while working with your tax professional to potentially help achieve maximum tax advantages for you and your family.u Disclaimer: Wells Fargo Private Bank provides products and services
through Wells Fargo Bank, N.A. and its various affiliates and subsidiaries. Wells Fargo does not provide tax or legal advice. Please consult your profes- sional tax and legal advisors to determine how this information may apply to your own situation. Asset allocation and diversification do not assure or guar- antee better performance and cannot eliminate the risk of investment losses.
VICE PRESIDENT & COMMERICAL LOAN OFFICER
JOE SOFIA
Call us at 321.253.1555 340 N. Harbor City Blvd. Melbourne 32935
floridabusinessbank.com
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